Daily Excelsior...Business

Natco Pharma acquires US-based Newark Drugs

Govt buys time, fuel price revision not on Cabinet today

Modeling, a new love of IT professionals

REC price band likely between Rs 90-105;IPO to open this month

Glenmark gets $15 mln from Forest Labs

NEW DELHI, Feb 6: Glenmark Pharmaceuticals Ltd today said its Swiss subsidiary has received a payment of 15 million dollars from US-based Forest Labs, for its experimental Oglemilast molecule.

Glenmark and Forest Labs are working together closely to initiate additional studies for further long term development of oglemilast, including a Phase II study in Asthma, according to a company statement.

Both the companies had entered into a collaborative agreement in September 2004, wherein Forest will develop, register and commercialise GRC 3886 for the North American market, while Glenmark will retain commercialisation rights for the rest of the world.

Forest paid Glenmark an up-front payment upon initiation of the agreement, and will pay more if the development and commercialisation of the product is successfully completed in the North American market; the total value of these payments could be 190 million dollars, the statement added.

The payment followed the US Food and Drug Administration approval to start additional phase II, or mid-stage, clinical studies on the molecule for a host of lung disorders.

Mumbai-based Glenmark has a similar deal with Teijin Pharma Ltd for the region of Japan.

(UNI)

MRPL & Shell enters Joint Venture in Aviation Fuelling Business

MUMBAI, Feb 6: Mangalore Refinery & Petrochemicals Ltd (MRPL) has announced that the Company and a subsidiary of ONGC, has entered into an agreement to form a Joint Venture with Shell for domestic marketing of Aviation Fuel.

The Joint Venture (JV) was signed on February 05 by MRPL Managing Director R Rajamani and Vice President Shell Aviation Sjoerd Post, in the presence of Chairman ONGC Group of Companies R S Sharma and Chairman Shell Group of Companies in India Vikram S Mehta. The agreement is effective from March 01, 2008, the company's release at BSE, stated here today.

The JV Company would be incorporated as a private limited Company, with initial equity of Rs 30 Crores. The Registered and Head offices of the JV would be at Bangalore.

JV will initially commence marketing of ATF at Bangalore and Hyderabad, and later expand its operations to other airports in India. JV will refuel foreign aircrafts in Indian airports and will also contract refuelling of Indian aircrafts at foreign airports through Shell affiliates.

Mr Sharma was optimistic that the JV agreement as a major initiative by both Companies to cater the growing Indian Aviation sector that will catalyse the marketing activities of MRPL.

Mr Mehta said, ''With huge growth in the civil aviation sector in India, it is indeed timely that we are formally joining hands with MRPL, to serve this large market opportunity with our shared values of quality products and excellent service.'' (UNI)

Natco acquires Newark Drugs

NEW DELHI, Feb 6: To strengthen its presence in the US retail markets, Natco Pharma Ltd today said it has acquired US-based retail pharmacy stores Newark Drugs.

"US-based general partnership firm K&C Pharmacy, in which Natco has stake of 75 per cent, has acquired Network Drugs," a company statement said.

Newark Drugs’ annual sales stands at about five million dollars.

Through this acquisition, Natco seeks to achieve economics of scale in purchasing and its revenues from the US retail aggregates to over 35 million dollars annually.

The company plans to acquire a few more stores to strengthen its presence in the US retail markets, the statement added.

Since 2006, this is the third acquisition by Natco, after Nicks’ Drugs and SaveMart Drugs.

(UNI)

US economy decline will not have impact on SAP: Ranjan Das

BANGALORE, Feb 6: President and CEO of SAP, world’s leading provider of business software Ranjan Das today opined that the fall in US economy will not have any adverse impact on SAP India and there will be no cut in expenditure cost or cut in jobs.

Talking to newspersons here, he said "there may not be any impact on SAP following decline in the US economy and in India I don’t expect slow down."

Mr Das said SAP India has registered over 100 per cent growth in license revenue in 2007 as compared to previous year and the number of customers has doubled to 3,024 from 1,350 in December 2006. Business also registered a 230 per cent growth and SAP’s market share in terms of revenue stood at 42.5 per cent.

Mr Das said the company plans to launch ‘Buy Back’ product aimed at garnering small companies in April this year.

Replying to a question, he said the process of SAP investing One Billion dollar by 2010, started in 2006 is continuing.

With the company registering overwhelming growth, SAP will go in for recruitment drive this year and more than 100 might be recruited. India is the third largest subsidiary for SAP in terms of employees. At present SAP has 4,836 employees on its roll, he said.

SAP India has direct presence in nine cities besides Sri Lanka and Bangladesh.

(UNI)

Indiabulls Financial to raise up to Rs 4,000 cr

MUMBAI, Feb 6: Domestic brokerage major Indiabulls Financial Services today said it will raise funds to the tune of Rs 4,000 crore through the issue of securities in domestic as well as international markets.

The company would raise Rs 4,000 crore in one or more tranches through the issue of Foreign Currency Convertible Bonds, Global Depository Receipts, equity shares, debentures or any other securities other than warrants to Qualified Institutional Buyers (QIB), Indiabulls Financial said in a filing to the Bombay Stock Exchange.

Indiabulls Financial would also enhance the existing borrowing limits and increase the existing authorised share capital of the company.

The board of directors have approved the draft postal ballot notice covering the aforesaid matters and the company would seek shareholders approval for the above mentioned purposes through postal ballot.

The results of the postal ballot would be declared on March 6, this year.

Earlier in January this year, the board of directors approved the proposal to raise 1 billion dollar (about Rs 4,000 crore) through the issue of shares by international offerings of convertible securities such as American Depository Receipts (ADRs), GDRs and FCCBs convertible into equity shares.

(PTI)

Further fall in Instanex Skindia DR Index

MUMBAI, Feb 6: The Instanex Skindia DR Index declined further by 45.51 points or 1.44 per cent to 3,104.12 on February 5 from 3,149.63 previously.

However, the P/E Ratio ruled steady at 26.77 Instanex Capital release said here today.

Following are the GDR and ADR rates for Feb 5 in US dollars with differences in percentage from the previous level given in brackets.

Bajaj Auto(GDR) 61.50 (-0.76)

Dr Reddy (ADR) 13.85 (+0.80)

HDFC Bank (ADR) 110.89 (-5.54)

Hindalco (GDR) 4.60 (+1.32)

ICICI Bank (ADR) 57.74 (-4.47)

Infosys Tech (ADR) 39.85 (-6.65)

ITC (GDR) 5.24 (+6.07)

L&T (GDR) 95.95 (+2.62)

MTNL (ADR) 6.52 (-5.23)

Ranbaxy Labs (GDR) 9.70 (+7.78)

Reliance (GDR) 130.70 (+5.70)

Satyam Comp (ADR) 24.34 (-6.46)

SBI (GDR) 113.50 (-2.99)

VSNL (ADR) 25.01 (-6.85)

Wipro (ADR) 11.92 (-6.22)

(PTI)

Chemical prices remain steady

NEW DELHI, Feb 6: Chemical prices moved in a tight range in the wholesale chemical market today and closed around previous levels.

Traders said negligible enquiries from consuming industries against adequate stocks kept prices flat.

Following are today’s quotations:

Ammonia bicarb (25 kg) 350 Ammonium chloride (50 kg) 1,800, acetic acid (1 kg) 42, boric acid technical (50 kg) 4,400-4,700, borex granular (50 kg) 2100.

Caustic soda flake (50 kg) 1190 citric acid (50 kg) (China) 2,650-2,800 citric acid deshi (50 kg) 2,600-2800, camphor slab (1 kg) 170-175, camphor powder (1 kg) 150, glycerine (1 kg) 78-80, hexamine (1 kg) 82, hydrogen peroxide (1 kg) 31-32, mercury (34.5 kg) 28,800, menthol bold crystal (per kg) 628 menthol flake (1 kg) 605 and Mentha oil (1 kg) 515.

Paraffin wax (50 kg)Iran 2,900-3,000

paraffin wax (50 kg)China 3,600

paraffin wax (50 kg) Indian 3,250

residue wax (p tonne) 30,000

soda ash (50 kg) (Tata) 880

soda ash (50 kg) (Gujarat) 870

soda ash (50 kg) (Dcw) 870

soda ash (50 kg) (Birla) 870

Sodium Nitrite (50 kg) 1400-1550

Sodium silicate (Qtl) 950-1100

stable bleaching powder (shriram) (25 kg) 310 stable bleaching powder (chambal) 340

stable bleaching powder (modi) 310

tartaric acid france (1 kg) 421

thymol (1 kg) 415

titanium dioxide (ttk) (1 kg) 100

titanium dioxide (k-brand) (1 kg) 90

titanium dioxide (china) (1 kg) 90

titanium dioxide (TR-92) 108

titanium dioxide (rc-822) (1 kg) 108

oxalic acid (pcpl-red) 50 kg 2500

oxalic acid (pcpl-blue)50 kg 2500

Zinc oxide (kg) 122-135. (PTI)

Natco Pharma acquires US-based Newark Drugs

MUMBAI, Feb 6: In a bid to strengthen its presence in the US retail market, Natco Pharma today said it has acquired the assets of US-based retail pharmacy firm, Newark Drugs, for an undisclosed amount.

The Hyderabad-based company acquired Newark Drugs through US-based general partnership firm K&C Pharmacy, in which it holds 75 per cent stake.

With the acquisition, Natco expects revenues from the US retail to touch over 35 million dollars in a full year, the company said in a filing to the Bombay Stock Exchange.

This is the third acquisition that Natco has made since 2006, the first two being Nicks` Drugs and SaveMart Drugs.

The annual sales figure of Newark Drugs is around 5 million dollars.

(PTI)

Govt buys time, fuel price revision not on Cabinet today

NEW DELHI, Feb 6: Government seems to buying more time to decide on revision in petrol and diesel prices with the issue not being listed for discussion at the Cabinet meeting scheduled for tomorrow.

"It was expected that the Cabinet would this week take a decision on the issue that has been hanging for months now. But the agenda for the tomorrow’s Cabinet meeting does not list fuel price revision as an item for consideration," a Petroleum Ministry official said.

A Rs 2 a litre increase in petrol and Re one per litre hike in diesel prices is being contemplated but a duty rejig to minimise impact of high international crude oil prices looks unlikely.

The official, however, added that such sensitives items are sometime added to the Cabinet agenda at the last moment.

On his part, Petroleum Minister Murli Deora remained non committal. "The Cabinet is to meet tomorrow (afternoon). But I can’t say if this (fuel price revision) will be discussed."

Insiders said several quarters within the ruling UPA alliance were opposed to even a marginal auto fuel price increase and that probably has kept the issue hanging.

Petrol and diesel price increase and possibly also domestic LPG rate hike had been on cards since October-end when international crude oil prices touched record high, but political compulsions has led to its postponement several times.

The official said the Government may raise the quantum of oil bonds to be issued to state-run retailers to partly compensate them for selling petrol, diesel, LPG and kerosene below the cost.

Presently, 42.7 per cent of the under-realisation on petrol, diesel, LPG and kerosene is met by the government through issue of oil bonds. This percentage may increase, the official said.

Another 33 per cent is chipped in up upstream companies like ONGC and GAIL, while the remaining has to be borne by the retailers - Indian Oil, Bharat Petroleum and Hindustan Petroleum.

The total under-realisation this fiscal is estimated at around 71,808 crore, he said.

"We wanted a Re one a litre reduction in excise duty on petrol and diesel. But, I don’t think that is happening just now," the official said.

The state-run firms lose Rs 10.57 per litre on petrol, Rs 11.56 on diesel, Rs 19.89 on kerosene and Rs 331 on each LPG cylinder.

Last week, a Group of Ministers headed by External Affairs Minister Pranab Mukherjee had left a decision on fuel prices to the Cabinet after the panel was split right in the middle on the issue. Petroleum Minister Murli Deora insisted on a duty cut rather than price hike, while Finance Minister P Chidambaram was opposed to any pre-Budget duty rejig.

Petrol and diesel prices were last raised in June 2006, when crude oil was at 67 dollars a barrel. It is at 92 dollars a barrel this year. LPG prices were last raised by Rs 20 per cylinder in November 2004 when crude was at 34 dollars a barrel. Kerosene prices have not been changed since 2002 when crude was at 23 dollars per barrel.

A Re one per litre increase in petrol price would give Rs 90 crore a month additional revenue to public sector oil companies. A similar hike in diesel would fetch Rs 360 crore a month. A Rs 10 per cylinder increase in LPG prices would result in Rs 58 crore additional revenues every month. (PTI)

Modeling, a new love of IT professionals

NEW DELHI, Feb 6: With fashion and advertisement industry witnessing a boost, modeling is emerging as a preferred career option among the youngsters. The charisma of this glamour is attracting even professionals already drawing hefty salaries.

The trend which has shown euphoric interests of highly-paid professionals into the glamour world, surfaced recently when hundreds of software professionals teemed up to take part in a modeling pageant.

The contest,’Hayward’s Mr India World contest 2008’ kicked off its preliminary rounds recently and recorded an overwhelming response as nearly 2000 youngsters from across the country participated.

"In our regional audition for southern India which was held in Bangalore, we got around 300 entries and more than 70 per cent of these applications were from Software engineers, which is enough to show what a tremendous response the contest is getting," said Kavita Bagga of of Times Innovative Media Limited, a co-organiser of the pageant.

Apart from this, many call centers employees and students of different professional courses sent entries for the contest, supposed to be a gateway for modeling career.

"We also got entries form different professionals, call centre employees and students from different cities," Bagga added.

At a time when Information Technology revolution in the country has established the sector as one of the most promising and money making profession, industry people feel that it was a thirst for fame and glamour that is driving people to areas like these.

"Everybody wants to explore new areas. Fields like modeling and acting, are full of glamour, name and fame. I think, it is strong enough a reason for youngsters to be attracted toward it," said Bonie Gregory from Hyderabad, a software professional working with leading IT company Infosys.

However, Gregory feels that it is not a act of quiting the profession but "an act of seeking an opportunity with out losing anything and many times only for fun."

"In our profession people generally switch over to higher companies for better package and job profile, but I never come across cases like people opting for career in modeling and all. I think it is only because of money and glamour that people getting attracted to this," said another IT professional Neeladari who works with Wipro in Bangalore.

However, those involved in the fashion industry find the trend positive and attribute it to high potentials of the fashion world.

"Consumerism and media exposure have strengthened ad and fashion industry. This upsurge has made the modeling an attractive career option," says famous fashion designer Katine Kochar.

Not only highly-paid professionals, show business is enchanting rural youth as well. With the growing fashion market and higher demands of the male models, the pageant like Mr India is being eyed by youngsters as a perfect platform for the career in the glamour world.

"It is a very good trend as such contests provide an opportunity to explore one’s talent. It is like a first step toward promising career in modeling," Kochar added.

Hundreds of youngsters of rural areas mainly from Punjab, Jharkhand and Bihar have applied for Mr India World Contest which is slated to start from next month.

"In our regional audition round for north, we have received a whopping number of entries most of which are from people from small towns of Jharkhand, Punjab, Uttar Pradesh and Bihar. Many of them are from agricultural and defence backgrounds," said Kavita Bagga.

The winner of this contest will represent the country at the prestigious international pageant, Mr World, organised by Miss World Ltd. (PTI)

REC price band likely between Rs 90-105;IPO to open this month

NEW DELHI, Feb 6: State-run Rural Electrification Corporation, which is expected to hit the capital market by the third week of this month is likely to fix the price band of its Initial Public Offer at Rs 90 - Rs 105 per share.

"The company is going to file the Red Herring Prospectus with the Registrar of Companies today and the road shows will begin from tomorrow," company sources said.

REC - a lending institution to power sector- is estimated to raise about Rs 1,200 crore through the IPO by offering 15.61 crore shares, which includes about 39 lakh shares reserved for the employees.

The company would offload 18.81 equity through the issue. REC would be the third power PSU to hit the capital market after Power Finance Corporation and PGCIL hit the capital market last year.

Further, National Hydroelectric Power Corporation (NHPC) is also planning an IPO by next fiscal, but is struck for want of required number of independent directors on its board. (PTI)